Inverse Etfs, Graniteshares short

Anyone with experience know for what time frames (days, months, years?) these instruments are ideally used?

Thanks! :slight_smile:

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None myself, first time I have seen these tbh & similar to yourself what’s the real world experience? Useful for bears :slight_smile:

Search on T212 forum brings up some previous threads -

An external view:

@JustLookingThx meet :handshake: @MarcRAFFARD from GraniteShares to help answer Qs

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@JustLookingThx, we will be happy to answer all your questions related to GraniteShares ETPs

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Thank you @Tihomir

I was bold enough (xD) considering shorting Tesla with this instrument:

GraniteShares 3x Short Tesla Daily ETP

My question is straight forward:
What is the recommended time frame holding this ETP? If I assume correctly it is using derivatives. I have been told/read that some inverse ETPs are not suited to be held for prolonged periods of time

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GraniteShares Leveraged ETP Securities are designed to give investors leveraged long or short exposure to the daily moves of an underlying asset.

Based on that, recommended holding period: One day

If you would like to learn more about GraniteShares investment products, please visit our educational section here: GraniteShares

Any additional questions, please let us know.

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What are the disadvantages of holding lets say for a week if I may ask

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there is no disadvantages of holding for a week, but an addtional risk that you must understand. We are talking about compounding impact risk. I do not want to say disadvantages , because it can be beneficial during one week of market trend.

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just in an example then, if it were to trade sideways with virtually no movement for the whole week you hold the position open, what is the rough compound impact we would see to our positions value?

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if there is no movement , you will not be impacted.
The risk come if the market move up 2% the 1st day, then next day move down 2% and 3rd day move up again by 2% etc…
there is few explanation on this page: Compounding Impact

I am working to do an animated video :slight_smile:

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